Competition in corporate sector is necessary for efficient resource allocation and economic growth. The project will investigate the evolution of competitive pressure in catching-up and integrating economies, how it affects labour markets, income distribution, social norms and attitudes, how different economic and social policies are responding to its challenges. The project will pursue empirical research on the behaviour of firms, employers, employees and households for some accession countries by also relying on the experience of catching-up EU countries. Our deeper knowledge will facilitate a thorough assessment of policy-making in accession countries and it will draw attention to critical policy issues.